Rs 223 Cr Case: ACB Raids Co-Operative Bank Chairman

SRINAGAR: The Jammu and Kashmir Anti Corruption Bureau has raided the residence of Jammu and Kashmir Cooperative Bank and other officials in a case involving Rs 223 crore, a spokesman of the Bureau said.

Advisor Ganai Inaugurates the first branch of the Cooperative Bank in Jammu (File Photo)

“On the outcome of Preliminary Enquiry (PE) conducted by Anti Corruption Bureau (ACB), it surfaced that Chairman Jammu and Kashmir Co-operative Bank Ltd in connivance with officials/ beneficiary has sanctioned an amount of Rs. 223 crores fraudulently in favour of nonexistent  Co-operative Society under the name and style of River Jehlem Co-operative house Colony at Shivpora Srinagar shown owned /run by one Hilal Ahmad Mir  S/o Kh. Sana-ullah Mir R/o Magarmal Bagh Srinagar  (Beneficiary),” the spokesman said in a statement.

During PE, he said, it was further revealed that the so-called Chairman of the said society has moved an application to Secretary Cooperatives, Administrative Department of Co-operative Societies, where under he sought directions to Jammu and Kashmir Cooperative Bank Ltd for grant of financial assistance to the tune of Rs 300 crores for taking over possession of 300 kanals of land located in the outskirts of Srinagar for construction of Satellite Township. The application was endorsed to Registrar Cooperative Societies Jammu and Kashmir for taking up the matter with Jammu and Kashmir State Cooperative Bank. Accordingly, J&K Cooperative  Bank Srinagar sanctioned Loan to the tune of Rs 223 crores without adhering any codal formalities, i.e obtaining the details of the Society Viz. Balance Sheet, Profit and loss Account business, activities being done by the Society, PAN No. Income Tax return, details of Construction of the Board, Board Resolutions, etc.

During the enquiry, it also surfaced that River Jhelum Cooperative Housing Building Society has not been even registered with Registrar Co-operative Societies, Jammu and Kashmir. The  Chairman of the so Called River Jhelum Cooperative  House Building  Society Ltd, Hilal Ahmad  Mir S/o Sana-ullah  Mir R/o Magarmal Bagh,  Srinagar by acting in league with Chairman of J&K  Cooperative Bank Srinagar and others, has prepared fake and fictitious registration certificates and managed the sanction of loan amount to the tune of Rs 223 crores.

“The above-mentioned acts of omission and commission on the part of Mohammad Shafi Dar Chairman  J&K State Co-operative Bank  Raj Bagh  Srinagar and others in conspiracy with Hilal Ahmad  Mir S/o San-ullah Mir R/o Magarmal Bagh , Srinagar constitute the offences punishable U/S 5(1)(d) r/w Section 5(2) P.C Act and Sections 465,467,468,471, 120-B  RPC, resulting in loss of Rs. 223 crores to the Bank.  Accordingly, case FIR No. 04/2020 P/S ACB was registered and investigation taken up,” the statement said. “During the course of investigation residential houses /offices of the accused persons were searched by the teams of ACB Kashmir in pursuance to Search Warrants issued by the Hon’ble Court. The documents etc so seized from the said houses /offices are being perused/scrutinized.”

Post Script

Secretary Jammu and Kashmir Cooperative Department, Abdul Majid Bhat sent these lines in response to the news items:

“When the NABRD intimated that state cooperative bank has granted loan to some housing cooperative society to the tune of (Rs) 230 crore to the Department, I immediately constituted a committee of three officers headed by senior-most Dy registrar and (on) the basis of the report of the committee the matter was referred to crime branch for verification of the genuineness of the society and modus operandi adopted by the bank in sanction of the loan. The matter was also referred to ACB. No time was wasted in probing the matter. The application of the society has been marked in the routine matter as number of applicants visit me in office and I mark the same to the concerned for action as per norms. The application of society was also marked to Registrar in a routine manner. The fact the department has been proactive in the matter after the information received from NABARD.”

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